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Before you click buy: a 5-question checklist

Before you click buy: a 5-question checklist

HOC Team

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2 min

Psychology

Before you click buy: a 5-question checklist

Most bad trades are not bad because of analysis. They are bad because they were taken without a plan. A short checklist slows you down just enough.

The five questions

  1. Is this setup in my plan? If it is not one of the setups you have written down, skip it.

  2. Where is my stop? If you cannot name the exact price, you are not ready.

  3. Where is my first target, and is it worth the risk? Aim for at least 1.5R to 2R to the first target.

  4. What is the context? Gamma regime, value area, time of day and upcoming news. Does the context support the trade?

  5. How do I feel right now? Bored, angry, rushed or chasing a loss? Then step away for five minutes.

Why it works

Checklists are used by pilots and surgeons for the same reason. Under pressure, people skip steps. Writing the steps down removes the guesswork.

Make it yours

Print the list or keep it next to your platform. Change the wording to fit your strategy. The important part is that you actually ask the questions before every trade, not just when you remember.

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Trading futures, options and forex involves substantial risk and is not suitable for everyone. Only use risk capital you can afford to lose. Results and examples shown on this website are for education only, may not be typical and are not a guarantee of future performance.